Optical fiber expansion: COMCO opens investigation

The Swiss Competition Commission (COMCO) has opened an investigation into Swisscom’s optical fibre network and ordered precautionary measures. Swisscom is currently in the process of massively expanding its fibre-to-the-home (FTTH) network and aims to double the number of connections to 3 million by 2025. The company is also engaged in intensive competition with alternative providers, such as electricity companies and cable network operators, in the construction and operation of long-range and broadband fixed-network connections. Swisscom will defend itself against the allegations levelled by COMCO and file an objection against the precautionary measures.

By Armin Schädeli

17 December 2020

Swisscom offers all its competitors broad access to its networks on a non-discriminatory basis on terms that are regulated or commercially agreed. Swisscom is constantly expanding its network and invests around CHF 1.6 billion annually in the expansion and maintenance of these networks. Competitors also benefit from this in by reducing their own investments and thus saving costs.

Point-to-multipoint as the basis for rapid and efficient fibre expansion

In its further expansion of FTTH, Swisscom primarily relies on point-to-multipoint architecture (from the manhole), thus still enabling competition with wide-ranging offerings. This is the most suitable architecture for driving optical fibre expansion throughout Switzerland, as it builds optimally on the existing network. The reuse of the feeder cabling allows faster and more cost-efficient FTTH expansion in Switzerland. This way, Swisscom is meeting the growing demand for broadband in the course of advancing digitisation of the economy and society. Both end-users and wholesale customers stand to benefit from this by purchasing wholesale upstream products.

Swisscom fails to understand the allegations made by COMCO, will analyse them in detail and decide on the further course of action.

Wide variety and maximum bandwidth

Swisscom offers providers that do not have a network of their own a multitude of network access options with different bandwidths. The offerings have been on the market for many years, are continuously developed, and meet with a high level of acceptance among wholesale customers. Providers without their own network always have access to the maximum bandwidth available. In addition, wherever possible, Swisscom strives to expand the network in cooperation with partners, as in the past.

Doubling FTTH connections to 3 million by 2025

Growth in data traffic is unbridled in Switzerland. An efficient network infrastructure is fundamental for a society and economy that wishes to exploit the opportunities of the digital age. Swisscom aims to double its FTTH coverage by the end of 2025: 50-60% of all homes and offices will be able to use a bandwidth up to 10 Gbps by then. Besides, modernisation of the existing FTTS (fibre-to-the-street) network is continuing. As a result, by the end of 2025 an additional 30–40% of homes and offices will have bandwidths of 300–500 Mbps.

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